Section 27 — Canada Business Corporations Act: Shares in series

The articles may authorize, subject to any limitations set out in them, the issue of any class of shares in one or more series and may do either or both of the following: fix the number of shares in, and determine the designation, rights, privileges, restrictions and conditions attaching to the shares of, each series; or authorize the directors to fix the number of shares in, and determine the designation, rights, privileges, restrictions and conditions attaching to the shares of, each series. If any cumulative dividends or amounts payable on return of capital in respect of a series of shares are not paid in full, the shares of all series of the same class participate rateably in respect of accumulated dividends and return of capital. No rights, privileges, restrictions or conditions attached to a series of shares authorized under this section shall confer on a series a priority in respect of dividends or return of capital over any other series of shares of the same class that are then outstanding. If the directors exercise their authority under paragraph (1)(b), they shall, before the issue of shares of the series, send, in the form that the Director fixes, articles of amendment to the Director to designate a series of shares. On receipt of articles of amendment designating a series of shares, the Director shall issue a certificate of amendment in accordance with section 262. The articles of the corporation are amended accordingly on the date shown in the certificate of amendment.